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Management accounting systems have encountered a lot of criticism in recent years on the grounds

Management accounting systems have encountered a lot of criticism in recent years on the grounds that traditional methods for allocating costs to products, services, activities or departments may no longer be relevant to management in today’s environment. You are required to explain how you would calculate the cost of an individual product, service or activity using relevant examples. In doing this you should clearly explain any areas where judgement was required or limitations in your methodology. Finally you should comment on whether or not you would be happy to use your calculations for decision making purposes

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